Should I remain single-channel or go multi-channel?

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United States United States
JennaF
Kudos: 23
Joined: Jul 30, 2019
Should I remain single-channel or go multi-channel?
30 Jul 2019
Hi,
I am currently an eCommerce seller who is focused on selling on a single channel. I am considering going multi-channel i.e. start selling on Amazon or opening a store through Magento. but am feeling a bit insecure about this expansion. Can someone tell me what are some of the pros and cons of going multi-channel vs. remaining single-channel ?

Thanks in advance for your help.

Jenna
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Israel Israel
Subivi
Kudos: 46
Joined: Nov 14, 2018
Re: Should I remain single-channel or go multi-channel?
30 Jul 2019
@JennaF

Hey Jenna,

I totally understand your concern. I mean, it sounds like you are doing well on eBay, so why risk expanding to marketplaces which you are unfamiliar with - right!? I am a personal believer in eCommerce as a multi-channel endeavor, but here are the major pros and cons:

Pros:

New customer base - By putting yourself out there and entering new marketplaces, you are exposing your business and your products to entirely new consumer pools who would have never known you existed otherwise.

Targeted selling - Is real. Many people who shop on eBay are looking for a brain whereas Amazon shoppers are looking for reliability and quick shipping. Etsy shoppers are art connoisseurs and Newegg consumers are electronics ‘geeks’. When you sell an item to a targeted audience, that item may have an increased value as it is appreciated by said audience.

Show a presence - Over 66% of eCommerce shoppers browse and make purchases on more than one marketplace, meaning modern shoppers are multi-channel by definition. That means that you too need to have a multi-channel presence in order to allow your shoppers to place a purchase with you wherever they feel comfortable to do so.

Cons:

Spreading yourself thin - Time and resources are precious and by investing them on multiple platforms, you risk wasting those resources on ‘ifs’ when you could be playing it safe on what is tried-and-true.

Inventory levels - Selling on multiple platforms seriously complicates inventory levels and exposes you to having to turn buyers away due to being out of stock or totally misplanning your inventory. You are unfamiliar with sales volumes and are wide open to detrimental mistakes.

Customer service - Having a few eCommerce stores on different marketplaces can be extremely hard from a customer service perspective. You have to log in and out of 5, 6 or even 10 accounts and constantly be on top of updating customers, answering questions and closing tickets. That is why many multi-channel sellers choose to use an eCommerce CRM like Subivi which helps you manage all your CS needs in one convenient space.

For a more in-depth exploration of single vs. multi-channel, check out my recent blog post: “Single-Channel Vs Multi-Channel: The Natural Evolution of an eCommerce Business”.

Best of luck to you !

Nadav Roiter

Thompson & Holt
StoreFeeder
Sellware